Macro Economics - 11524 Words

Unit-1 Q1. Define micro and macro economics, Distinguish between them, and explain the scope, importance and its limitations Ans. modern economy analysis has been divided into two major branches that is micro and macro economics. Micro economics means the economics system which deals individual economics unit on the other hand macro economics means the economics unit which deals aggregate as a whole that is national income, general employment, and total out –put, general price level etc. These two concepts first time used by PROF.R.FRISCH of Oslo university in 1933. But ,later on these two concepts systematically explained by J.M.Keynes in his famous book â€Å"General theory of employment,interst and money†. Distinguish between micro and macro†¦show more content†¦Macro-economic enables us to take certain steps to counter attack the adverse influences of inflation and deflation. g) Study of national income: it is the study of macro-economic which has brought forward the importance of study of national income and social accounts. With help of national income we are in a position to know which country is developed and which is not. Again, with help of the national income correct economic policies been formulated. h) Performance of an economy: macro-economic helps us to understand and analysis helps us to understand and analyses the performance of an economy. It implies result oriented study of an economy in terms of actual and factual achievements. i) Nature of material welfare: macroeconomic enables us to study the nature and size of the material welfare of the nations, the problem of measuring the social welfare is not easy, even welfare economy does not help us at that time , w e take the help of macro economics. Limitations of macro economics: Macro-economic analysis is very useful in studying the national problems that is – the problems related to the whole economy but there are certain limitations too, these limitations are in the nature of particle difficulties in formulating meaningful aggregates. The main limitations are: a) False generalization b) Difficulties in measuring the aggregates c) Diversities a) False generalization: The aggregate approach draws theShow MoreRelatedEcon Macro Economics1987 Words   |  8 PagesChapter 1: Page 20; Questions - 4, 7, 9, 10, 11   4) What are the key elements of the scientific method and how does this method relate to economic principles and laws? The key elements of the scientific method are the observation of real world behavior and outcomes. Based on those observations, formulating a possible explanation of cause and effect which is a hypothesis. Next, testing this explanation by comparing the outcomes of specific events to the outcome predicted by the hypothesis. Then, acceptingRead MoreMacro Micro Economics2304 Words   |  10 Pagesâ€Å"Economics has never been a science - and it is even less now than a few years ago.†Ã¢â‚¬ ¦Paul Samuelson INTRODUCTION Economics  is the  social science  that analyzes the  production,  distribution, and  consumption  of  goods  and  services. A focus of the subject is how  economic agents  behave or interact and how  economies  work. A given economy is the result of a process that involves its  technological evolution,  history  and  social organization, as well as its  geography,  natural resource endowment, and  ecologyRead MoreExamples of Macro and Micro Economics840 Words   |  4 Pages?Economics is a social science that mainly focuses on different fields of knowledge dealing with the proper distribution, allotment, production and consumption of resources. Economics has been divided into two significant branches; one of it being the microeconomics and the other one being the macroeconomics. 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Next, it will explain legal considerations that our organization must be prepared for, which are also relative to obtaining credit, having reliable market conditions, and avoiding product liability Capital Investment One of the most important concerns to our organization is capital investment. By investingRead MoreMacro Economic Objective on the Health of the Economy of Trinidad and Tobago954 Words   |  4 Pagestitle: a macro economic analysis on the health of the economy of trinidad amp; tobago methodology employed: Data for the economy of Trinidad and Tobago was collected from the CSO (Central Statistical Office) Information was collected for the period (1995- 2005) in the areas of economic growth as represented by changes in GDP (Gross Domestic Product) as well as GNP (Gross National Product), unemployment, inflation and the balance of payments. This data was then evaluated and analysedRead MoreBusiness Cycles Macro Economic Conditions And Its Impact Towards The Country1396 Words   |  6 Pages Economics for Business Essay Question Lecture Name - Maruf Mostafa Student Name - Wastu Kankanamalage Gayani Chathurangi Maithripala Student ID – 11621711 Word Count – 1000 Introduction This essay will mainly focus, discussing business cycles in macro-economic conditions and their impact towards the country. The first part of the essay will describe different economic conditions within the macro-economic such as an economy boom and recession. The argument will bring out some definitions